"Jan-Dhan-Yojna helps in the rural development." Do you agree with this statement? Explain.
Yes, I agree with the statement that Jan-Dhan Yojana helps in rural development.
The expansion and promotion of the rural banking sector had taken a backseat after reforms. To improve the situation, all adults are encouraged to open bank accounts as a part of the Jan-Dhan Yojana scheme.
This scheme provides multiple benefits to account holders. They can get Rs. 1-2 lakh accidental insurance coverage and overdraft facilities for Rs. 10,000. This provides financial security and access to credit for the rural poor.
Additionally, account holders can receive their wages from government-related jobs and works under MNREGA directly in their accounts. They also receive old age pension and other social security payments from the government directly.
Since rural development is a comprehensive term focusing on action for development of areas lagging behind in the overall development of the village economy, Jan-Dhan Yojana contributes significantly by bringing the rural population into the formal banking system and ensuring direct benefit transfers.
Explanation
The answer draws directly from the textbook context which explains how Jan-Dhan Yojana was introduced to improve the rural banking sector after it took a backseat post-reforms. The scheme's benefits (accidental insurance, overdraft facility, direct wage payments under MNREGA, pension, social security payments) directly contribute to rural development by providing financial inclusion and security to the rural population.